Malaysia is estimated to suffer losses of more than RM700 million annually due to illegal Bitcoin mining activities that illegally steal electricity supplies.
Deputy Minister of Energy Transition and Water Transformation, Datuk Seri Abdul Rahman Mohamad, said that the activity is increasingly worrying because many premises used to mine cryptocurrencies were found to have dangerous electrical wiring systems.
According to him, the use of illegal electrical connections can cause the risk of explosion, fire and power supply disruptions to other users in the surrounding areas.
The statement was made after he participated in an operation to cut off the power supply at two houses around Taman Seri Mahkota and Kampung Batu 11 that were believed to be carrying out illegal Bitcoin mining activities.
The operation, carried out jointly with Tenaga Nasional Berhad and the Energy Commission, revealed the tactics of the syndicate who used rented houses to avoid detection by the authorities.
The inspection results found that the first premises housed 18 crypto mining machines that were actively operating with electricity consumption reaching more than 40,000 kilowatts per day.
The electricity supply loss for the premises is estimated at around RM21,000 per month.
Meanwhile, the second premises uses 10 mining machines with an estimated electricity loss of around RM13,700 per month.
In total, the two premises are believed to have caused losses of almost RM34,000 per month or more than RM200,000 over a six-month period.
The case is currently being investigated under Section 37(3) of the Electricity Supply Act 1990.
Individuals or companies found guilty can be fined up to RM50,000 or imprisoned for a maximum of one year for a first offence.
For repeat offences, the punishment can increase to a fine of RM100,000 or imprisoned for up to three years.
At the same time, Datuk Seri Abdul Rahman also reminded homeowners to be more careful when renting out their premises, including changing the electricity account to the tenant's name to avoid the risk of incurring losses in the event of electricity theft.
He also urged the public to immediately report any suspicious activity related to cryptocurrency mining which is believed to be using electricity illegally.
